SYNTHETIC LONG CALL	RATIO PUT WRITE
About Strategy	Synthetic Long Call Option Strategy A trader is bullish in nature for short term, but also fearful about the downside risk associated with it. Here, a trader wants to hold an underlying asset either in physical form like in case of commodities or demat (electronic) form in case of stocks. But he is always exposed to downside risk and in order to mitigate his losses, Read more..	Ratio Put Write Option Strategy  This strategy is implemented by selling (short) the underlying asset in the cash/futures market. Simultaneously, sell ATM Puts double the number of long quantity. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future. Here profits will be capped up to the premium amount and risk will be potentially unlimited. .. Read more..

SYNTHETIC LONG CALL Vs RATIO PUT WRITE - Details

	SYNTHETIC LONG CALL	RATIO PUT WRITE
Market View	Bullish	Neutral
Type (CE/PE)	CE (Call Option)	PE (Put Option)
Number Of Positions	2	2
Strategy Level	Beginners	Beginners
Reward Profile	When Price of Underlying > Purchase Price of Underlying + Premium Paid	Max Profit Achieved When Price of Underlying = Strike Price of Short Puts
Risk Profile	Limited (Maximum loss happens when the price of instrument move above from the strike price of put)	Loss Occurs When Price of Underlying < Strike Price of Short Put - Net Premium Received OR Price of Underlying > Strike Price of Short Put + Net Premium Received
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

SYNTHETIC LONG CALL Vs RATIO PUT WRITE - When & How to use ?

	SYNTHETIC LONG CALL	RATIO PUT WRITE
Market View	Bullish	Neutral
When to use?	A trader is bullish in nature for short term, but also fearful about the downside risk associated with it.	This strategy is implemented by selling (short) the underlying asset in the cash/futures market. This strategy is used by a trader who in neutral on the market and bearish on the volatility in the near future
Action	Buy 1 ATM Put or OTM Put	Sell 2 ATM Puts
Breakeven Point	Underlying Price + Put Premium	Upper Breakeven Point = Strike Price of Short Puts + Points of Maximum Profit Lower Breakeven Point = Strike Price of Short Puts - Points of Maximum Profit

SYNTHETIC LONG CALL Vs RATIO PUT WRITE - Risk & Reward

	SYNTHETIC LONG CALL	RATIO PUT WRITE
Maximum Profit Scenario	Current Price - Purchase Price - Premium Paid	Net Premium Received - Commissions Paid
Maximum Loss Scenario	Premium Paid	Price of Underlying - Sale Price of Underlying - Net Premium Received OR Strike Price of Short Put - Price of Underlying - Net Premium Received + Commissions Paid
Risk	Limited	Unlimited
Reward	Unlimited	Limited

SYNTHETIC LONG CALL Vs RATIO PUT WRITE - Strategy Pros & Cons

	SYNTHETIC LONG CALL	RATIO PUT WRITE
Similar Strategies	Protective Put, Long Call	Short Strangle and Short Straddle
Disadvantage	•Chances of loss if the underlying goes down. •Incur losses if option is exercised.	• Potential loss is higher than gain. • Limited profit.
Advantages	•Limited risk, unlimited profit. •Protection to your long-term holdings. • Limited loss to the to the premium paid for Put option.